Michigan recently underwent drastic changes to its automobile insurance laws. Despite general guides and notices about the change, many people are left confused about how the reform will impact their right to recovery after a Michigan car accident. For 50 years before the change, Michigan followed the no-fault auto insurance system. Lawmakers framed the no-fault insurance system to allow accident victims a straightforward and efficient way to file claims and recover damages. Further, the law was designed to address the growing number of personal injury lawsuits. Under this framework, Michigan motorists generally carry unlimited medical coverage to cover expenses if they experience injuries in a car accident.
Under the new system, insurance companies must provide motorists with more choices that may fit their specific needs more adequately. Before the change, Michigan drivers had to carry unlimited Personal Injury Protection (PIP) insurance coverage. PIP coverage is medical and rehabilitation insurance benefits that an accident victim can claim.
Now, the law allows Michigan motorists to keep unlimited PIP coverage or choose from six other options. The other options include the following: